Newsday from New York, New York • 39

10-DAY35OO DOW TREND 3400 3300 BUSINESS 3 Federated Earnings Sales Climb Parent of seeks to stop from hiring exec By Suzanne Bilello STAFF WRITER Federated Department Stores Inc yesterday reported better-than-expect-ed second-quarter earnings on the strength of frugal management and better merchandising a blueprint the company has followed since emerging from bankruptcy protection 18 months ago The parent of Abraham Straus and said it earned $89 million in the second quarter of fiscal 1993 compared with a $294 million loss the same period a year ago when Federated took a one-time charge to cover the expense of retiring debt Sales rose 3 percent to $15 billion good news comes as arch rival RH Macy Co is still reorganiz provision of contract with Federated Farah 40 is scheduled to become the new chief merchant for next July 1 replacing Mark Handler who retired May 13 after 35 years with the company Officials at Manhattan headquarters would not comment on earnings or its moves to block departure Federated headquartered in Cincinnati said the earnings picture was consistent in all of its department store divisions of our di visions this year in terms of profits exceeded expectations" said Carol Sanger spokeswoman for Federated The company did not break out quarterly results for individual chains ing under bankruptcy court protection which retail analysts have said is hurting ability to compete has become the dominant department store group in the New York metropolitan said Manhattan-based retail analyst Alan Millstein A component in reorganization includes plans to hire merchandise division chief Roger Farah as its new president and chief elective Federated is fighting the move on the grounds that contract prohibits him from working for a competitor far two years after it expires in June 1994 Federated yesterday withdrew its re-' quest for an injunction to prevent Farah from going to Instead Federated said it now is asking an Ohio court to schedule a full trial no later than June 30 1994 on its claim that the existence of an employment pact between Farah and violates the rn': -s lifct d' JtsV-J Fanxy this Wealthy consumero who were -hicky enough to' purchase high-priced jewelry v'- furs boats or airplances within the past eight months are entitled to a refiind from the federal government It may not seem in keeping with the soak-the-? rich atmosphere surrounding the deficit reduc- tion bill but -the result of a provision that repeals a luxury tax made retroactive to Jan 1: The Internal Revenue Service is putting the -finishing touches on instructions for retailers 1 who are going to bis responsible far reimbursing consumers far the 10 percent -luxury tax that -was applied to the amount of the purchase price -v that exceeded $10000 for jewelry and furs for boats and $250000 farairplanes-' Cars costing $30000 ormore still cany the lux-fi liry tax a paint that irritates some car deal- Tcf Vf vt I i I r6 Sb-v ''Y -'y Merchants must file Farm 843 Claim for Rfr fond with the IRS seeking the amount of the luxury taxesthey collected from consumers since the first of tin year Huy also must sub- certification atating that the customer will' get the inoney The final details on the type of certification merchants must submit still must be worked out by the IRS Merchants in the metropolitan area aren't too concerned about the complexity df getting -refunds back to their retailers warit sohappythdtox has been repealed that cionsiderthe refund process to be quite Jluni Airborne Antismpking Crusade Susan Shirts and CJ Spadaro lower left of Airtaxi Charter Inc pilot Martin Pecchio under wing and Tom Sanchez who rents the plane to the charter company show the banner they've been towing over Long Island beaches An antismoking group has begun launching airborne advertising to counter tobacco company banners Story Page 41 Morgan Stanley Picks Plum Buys bankrupt Times Square tower at deep discount i information Council of America- £Fsd ChalCowner of the tinner long Island-:" baaed Fred Cball Marine Shops aware 'of-the det Wpeady to jump through hoops to sell more hixu- company had contemplated moving to Stamford Conn striking fear in the hearts of New York City and state officials Its decision to stay was helped by package of tax incentives worth nearly $40 million But the soft Manhattan real estate market proved to be an even bigger factor in the decision to stay The imliifl nfMmihiitfain nfficp hiiililinpi hm fallen HramiiH cally since the late 1980s having dropped by about half in this and other cases The 1585 Broadway building has only one large tenant the law firm of Proskauer Rose Goetz Mendelsohn which occupies about one quarter of the 15 million square feet One real estate expert said yesterday that the deal is good news for the city economy especially consider- Please aee OFFICE cm Next Page By David Henry and Daniel Beucke STAFF WRITERS Ten months after getting generous government incentives to shy in Manhattan Morgan Stanley yesterday cashed in an even more lucrative reward buying a 41-stozy Midtown office tower for $176 milium half its original value Morgan Stanley will move all of its Manhattan operations to the building at 1585 Broadway in the Times Square area Hie building is being bought out of bankruptcy court where it was placed 19 months ago ly developers David and Jean Solomon after banka foredoaed on $340 million in loana Morgan Stanley one of Wall premier institutions announced last October it would keep its hnartminTtn Wmiutfan my" 'Hi 4 I I I I I -depressed economyy dost 500000 production jobs nationwide and 4000 in New Jersey 5 7 i.